Labour has vowed to continue to fight for Budget cuts “significantly lower” than €3.1billion.

Junior Minister Alex White said his party believes our deficit can be dragged down to 3% by 2015 without taking that amount from the economy.

He added all of the Labour ministers are “very clear” the targets can be met without making some cutbacks.

Mr White said: “I can’t put an exact number on what that is but all the indications from what I read and even the figures this week point to an improvement in our fortunes.

“I think this figure of 3% by 2015, which we are committed to and will reach, will not require a €3.1billion adjustment and it could be significantly less than that. How much less than that I don’t know.” Labour and Fine Gael ministers have been at loggerheads over the size of the adjustment.

Finance Minister Michael Noonan has told his colleague Brendan Howlin he wants to wait until after September’s Exchequer figures are released on October 2 before making a decision.

But Eamon Gilmore’s party want the figure to be signed and sealed within the next ten days.

Taoiseach Enda Kenny let some details slip at a business dinner on Friday night when he confirmed there would be no change in our corporation tax rate or wealth tax.

He added: “As we frame the Budget I can assure you that two key promises will be kept.

“Our 12.5% corporation tax remains a cornerstone of Irish industry policy and is not in question from any quarters.

“Secondly, to make sure work pays for families we will reiterate our commitment that income tax will not be increased.

“We don’t want to add extra taxes on to jobs and investment which will be a step back in our path of national recovery.”

United Left Alliance TD Clare Daly said the Government should stop focusing on figures and instead on struggling families. She added: “It is lunacy to take money out of the pockets when the economy is on its knees.”